Page 59 - Reinsurance Management IC85

The Insurance Times

will be as follows: XL cover for
Rs.20,00,000 in excess of Rs. 10,00,000
with 2 reinstatements.

Loss on account of cyclone ranging for 10 days

(240 hrs) Rs.90,00,000. The loss during 72 hours

period was as under:-

1. First 72 hrs Rs. 30,00,000

2. Second 72 hrs Rs. 35,00,000

3. Third 72 hrs Rs. 20,00,000

4. Fourth 24 hrs Rs. 5,00,000

240 hrs Rs. 90,00,000

Then under the 72 hours clause reinsurers will pay
1. Rs.30,00,000 - Rs. 10,00,000 = Rs.20,00,000(one

excess)

2. Rs.35,00,000 - Rs. 10,00,000 = Rs.25,00,000
restricted to maximum under treaty Rs.20,00,000

3. Rs.20,00,000 - Rs.10,00,000 = Rs.10,00,000

4. Rs.5,00,000 not payable since within excess of
Rs.10,00,000.

Thus, totally reinsurers will pay Rs.50,00,000
treating each 72 hrs. period as one event.

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